TSTT to invest $160m in network, deploy VOLTE

Above: TSTT acting CEO Kent Western.

It’s difficult to imagine navigating today’s increasingly connected world without access to fast, reliable connectivity. Each day, more and more people depend on it to work, communicate and connect with loved ones. Clear, uninterrupted mobile service and broadband internet that is dependable and fast are the cornerstone of today’s connected world – and citizens expect it, in fact, they demand it, from their service providers.

Over the next twelve months, TSTT will seek to improve nationwide connectivity, as it prioritises enhancing customers’ experience with its brands and suite of services. The company will direct a considerable amount of its efforts and resources towards enhancing its network, with the goal of building the nation’s most advanced infrastructure with unsurpassed reliability and security. At its recent investor call for the quarter ended December 31st, 2023, the company announced it would spend more than $160m upgrading its network.

“Our aim? To build the top-tier network in Trinidad and Tobago, exceeding our customers’ expectations,” asserted Kent Western, Acting CEO of TSTT. “In this ultra-connected era, we grasp the pivotal role of telecommunications in people’s lives. That’s why we’re dedicated to delivering a network that empowers individuals and businesses alike.”

This investment will go towards further deployment of LTE at eighty (80) additional sites and advanced wireless service (AWS) at forty (40) sites. This will ensure that customers always have access to the fastest data and the best call quality. TSTT is also actively testing VOLTE (Voice over LTE), with the anticipation it will be ready for rollout in the coming year.

With VOLTE, customers can expect a superior experience where the mobile device remains in the 4G/LTE network during voice calls. Essentially, they can talk and surf the internet simultaneously at regular speeds. These advancements not only enhance network speed and coverage but also pave the way for additional innovative services and applications that enrich the user experience.

“Everything we do is geared towards giving our users the absolute best. We’re firm believers that a strong, dependable network is the bedrock of outstanding telecommunications,” Western emphasized. “Through ongoing investments in our infrastructure, we’re dead set on setting new standards for telecoms in Trinidad and Tobago and beyond.”

Some of the details were shared with investors as TSTT reported on the company’s quarterly financial performance where it also addressed key initiatives that will drive the company’s growth and sustainability well into the future.

Financial Performance Update

At the end of the third quarter of the 2024 financial year, TSTT proudly reported to its local and international investors another consecutive period of stable financial performance and sustained growth across its business. After an unprofitable period, Trinidad and Tobago’s only indigenous communications solutions provider has successfully returned to a period of profitability, thanks to the hard work and commitment of its team. With a stable outlook and cashflow, the company can now prioritise key investments that address feedback from its customers.

For the nine-month period ending December 31, 2023, TSTT saw a 6% year-over-year increase in revenue, reaching TT$1,489 million, with operating profit soaring by 29% to TT$435 million. Revenue from each quarter of the 2024 financial year to date, has exceeded all quarters in the previous two financial years. These results are evidence that the investments being made by the company and the strategic initiatives that have been employed are bringing returns. Based on the performance of the last three quarters, TSTT is well on its way to exceeding the prior year annual revenue.

“We’re all about growth and stability, and our financial performance reflects that—solid as ever,” Western stated. “Moving forward, our sights are set on beefing up network reliability, bolstering brand trust, and fortifying TSTT’s cybersecurity stance.”

TSTT is buoyed by Moody’s maintenance of its B2 credit rating, with a stable outlook. Based on its detailed analysis, the rating agency opined, “the stable outlook reflects our expectation that TSTT will be able to return to stable revenue growth, and improve and maintain its EBITDA margin in the mid to high 30 percentages while maintaining adequate liquidity.”

TSTT’s financial health is evident in its performance, driven largely by an efficient operation and wise strategic investments. These results demonstrate an ability to generate sustainable earnings while still supporting strategic initiatives for future growth. TSTT is well-positioned to sustain profitability while serving the growing needs of its customers and building a superior network to support it.